OneMain Holdings, Inc. (OMF) vs SLM Corporation (SLM)

OneMain Holdings, Inc. and SLM Corporation are both Credit Services companies. OneMain Holdings, Inc. is the larger, with a market value of $6.5B against $4.3B — 1.5× the size. SLM Corporation trades at the lower P/E: 6.5× against 8.6×. OneMain Holdings, Inc. grew revenue faster over the last twelve months: 7.04% against 5.37%. SLM Corporation has the higher net margin (23.5% vs 12.3%) and the higher return on invested capital (17.8% vs 2.45%). Both pay a dividend; OneMain Holdings, Inc. yields more (9.13% vs 2.30%). Across the 19 metrics below, OneMain Holdings, Inc. leads on 10 and SLM Corporation on 9.

Valuation

Metric OMF SLM Credit Services median
P/E 8.64 6.52 9.64
P/S 1.04 1.45 0.87
P/B 1.96 2.01 1.16
Price to free cash flow 2.04 n/m 2.99
EV/EBITDA n/m n/m 9.58
EV/Sales 4.52 1.78 2.32
Earnings yield 11.58% 15.34% 6.72%
Free cash flow yield 49.09% (7.28%) 12.33%

Profitability

Metric OMF SLM Credit Services median
Gross margin 79.74% 63.91% 77.13%
Operating margin 0.00% 0.00% 0.34%
Net margin 12.26% 23.48% 9.25%
Free cash flow margin 50.72% (10.58%) 13.03%
Return on equity 23.28% 33.15% 8.49%
Return on assets 2.89% 2.48% 2.29%
Return on invested capital 2.45% 17.76% 4.09%

Growth

Metric OMF SLM Credit Services median
Revenue growth (TTM) 7.04% 5.37% 4.62%
EPS growth (last fiscal year) 54.72% 29.10% —
Revenue growth, 5-year CAGR 4.76% 5.73% 9.13%
Net income growth, 5-year CAGR 1.41% (3.49%) 0.00%

Health

Metric OMF SLM Credit Services median
Debt to equity 6.73 2.36 0.68
Current ratio 0.00 1.33 1.55
Net debt to EBITDA 0.00 0.00 0.13

Dividend

Metric OMF SLM Credit Services median
Dividend yield 9.13% 2.30% 3.34%
Payout ratio 0.73 0.28 0.00

Size

Metric OMF SLM Credit Services median
Market cap 6.52b 4.33b 872.19m

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